spending money. by the way, consumers are saving more money. that does not translate into economic growth, but arguably, it is a positive development compared to the way people weren t saving for the previous ten years. jenna: peter, a positive development on that, no job growth necessarily from the gdp number but it is growth as adam was mentioning. i ve looked at all four quarters of growth and the average growth of what u.s. demand for what u.s. producers make is 1.3%. heck, we can cover that with productivity growth. the rest of the statistic was basically building up of inventories that haven t been sold. we can cover 1.3% for productivity growth, in fact, wool see more layoffs. if demand doesn t pick up, all those business investments that he just spoke of will be useless and we ll have unemployment above 10 percent again. the economy is not in great shape. jenna: adam, you think it s still all right now? the economy is still based on what peter just said, hey, if we go int
jenna: president obama, speaking moments ago in detroit, praising the auto industry bailout plan and how it s helping the general economy recover. but new numbers just out today suggest a different packet picture, the economy growing at 2.4% in the second quarter, the weakest pace in nearly a year and lower than expected but the president doesn t see it that way. our economy was shrinking, about 6 percent per quarter. now, this morning, we learned that our economy grew by 2.4% in the second quarter of the year. so that means it s now been growing again for one full year. jenna: for one full year. reaction from peter marici, university of maryland and adam lashinski, editor of forbes magazine and fox news contributor. peter, starting with you, where are we in this recovery? this recovery seems to be tapering off, consumer
like we had in the savings and loan crisis. jenna: adam, what are your thoughts about what the government should do? of course we should be tough with china but we need to be prudent about that. we have plenty of capital to lend in the united states, the banks are flush with capital, there s plenty of access to capital. the problem is businesses and consumers having the confidence to spend it. there was ample evidence in today s report that businesses are starting to spend it. that s a move in the right direction. jenna: we ll take it and leave it there, adam and peter, thank you very much for weighing in on the economy today. we ll continue to watch the developments of course and we look forward to having you guys back. thank you. thank you. jon: a fox news alert, and take a look at this. a home explosion, we understand, in norfolk, massachusetts. this is about 40 miles to of boston. not much left there. firefighters are there, but we don t know yet what may have caused this thi
deficit with china, both of these things are a terrible drain on u.s. growth, this administration has shown a reluctance to deal with either. so my view is, that s kind of like wishing for a rich uncle to die and leave you his money. we re going to have to address this thing by doing a better job of running this government. he mentions trade deficits too, and we had more numbers this week that we re back to prerecession type of behavior where we re importing less and exporting more. i ask the budget director, i said, look, peter, maybe you don t have to worry about this, maybe the economy is going to come back like a locomotive and that economic growth will fake care of the deficit and the debt. and he said, you know, i don t think so. and the other point that he made, which i think is a really important one in all of these discussions is, we just don t know, we don t know how strong economic growth is, the prudent
welcome to your money, i m christine romans, ali is off this week. the classroom your child is in today will not look the same next year, states are broke, school will pay the price. arnie duncan will be here to talk about the future of your child s education, take years of spending more money than you earn, ever expanded safety net. it s the recipe for a debt crisis. think we re talking about greece, portugal, spain, europe, how about a look right here at home, 40 million people now being fed with food stamps, up to 99 weeks of jobless checks for the 15 million unemployed. uncomfortable parallels with europe. is the u.s. different though and why? peter marici is an economist,